Trends in asset structure of California hospitals during financial crisis

Jinhyung Lee

Abstract

The recent financial crises affected US economy as well as healthcare industry. However, how this financial crisis affected the asset investment trend in the hospitals has not paid attention. Thus, this study describes and analyzes the asset investment structure across hospital ownership and size before and after financial crises using California hospitals data from 2005 to 2010. This paper finds that hospitals’ asset structure is significantly different based on ownership and size. Not-for-profit hospitals experience significant drop in financial asset during financial crisis and large not-for-profit hospitals also showed significant changes in fixed and financial assets.